Taboola.com (NASDAQ:TBLA – Get Free Report) and Advantage Solutions (NASDAQ:ADV – Get Free Report) are both small-cap communication services companies, but which is the better investment? We will compare the two companies based on the strength of their risk, dividends, earnings, profitability, valuation, analyst recommendations and institutional ownership.
Profitability
This table compares Taboola.com and Advantage Solutions’ net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Taboola.com | 6.84% | 12.84% | 7.67% |
| Advantage Solutions | -8.91% | -62.88% | -10.98% |
Earnings & Valuation
This table compares Taboola.com and Advantage Solutions”s top-line revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Taboola.com | $1.93 billion | 0.26 | $42.28 million | $0.44 | 4.55 |
| Advantage Solutions | $3.60 billion | 0.11 | -$227.74 million | ($24.80) | -1.27 |
Taboola.com has higher earnings, but lower revenue than Advantage Solutions. Advantage Solutions is trading at a lower price-to-earnings ratio than Taboola.com, indicating that it is currently the more affordable of the two stocks.
Volatility and Risk
Taboola.com has a beta of 1.48, suggesting that its share price is 48% more volatile than the S&P 500. Comparatively, Advantage Solutions has a beta of 2.21, suggesting that its share price is 121% more volatile than the S&P 500.
Insider and Institutional Ownership
42.9% of Taboola.com shares are owned by institutional investors. Comparatively, 49.8% of Advantage Solutions shares are owned by institutional investors. 20.6% of Taboola.com shares are owned by insiders. Comparatively, 9.7% of Advantage Solutions shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.
Analyst Ratings
This is a breakdown of recent ratings and target prices for Taboola.com and Advantage Solutions, as provided by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Taboola.com | 0 | 4 | 3 | 0 | 2.43 |
| Advantage Solutions | 1 | 2 | 1 | 0 | 2.00 |
Taboola.com currently has a consensus price target of $4.33, suggesting a potential upside of 116.25%. Advantage Solutions has a consensus price target of $42.00, suggesting a potential upside of 33.04%. Given Taboola.com’s stronger consensus rating and higher probable upside, equities analysts plainly believe Taboola.com is more favorable than Advantage Solutions.
Summary
Taboola.com beats Advantage Solutions on 11 of the 14 factors compared between the two stocks.
About Taboola.com
Taboola.com Ltd., together with its subsidiaries, operates an artificial intelligence-based algorithmic engine platform in Israel, the United States, the United Kingdom, Germany, and internationally. It offers Taboola, a platform that partners with websites, devices, and mobile apps to recommend editorial content and advertisements on the open web to users. The company was incorporated in 2006 and is headquartered in New York, New York.
About Advantage Solutions
Advantage Solutions Inc. provides business solutions to consumer goods manufacturers and retailers in North America and internationally. It operates in two segments, Sales and Marketing. The Sales segment offers brand-centric services, such as headquarter relationship management; analytics, insights, and intelligence; and brand-centric merchandising services. This segment also provides retailer-centric services comprising retailer-centric merchandising and in-store media services. The Marketing segment offers brand-centric services, including shopper and consumer marketing, and brand experiential services; retailer-centric services, such as retail experiential and private label services; and digital marketing, and digital media and advertising services. The company was formerly known as Karman Holding Corp. and changed its name to Advantage Solutions Inc. in March 2016. The company was founded in 1987 and is headquartered in Irvine, California.
Receive News & Ratings for Taboola.com Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Taboola.com and related companies with MarketBeat.com's FREE daily email newsletter.
